Colorado’s Legislative Landscape: Energy Bills and Their Progress
As Colorado’s legislative session progresses, the energy bills introduced early in the year are beginning to take shape. The Independence Institute’s Energy & Environmental Policy Center initially highlighted these bills, and as March unfolds, several have seen action in committee hearings.
Two significant early proposals, SB26-033 and SB26-028, were dismissed in committee. SB26-033 aimed to implement pre-permitting requirements for wind and solar projects, while SB26-028 sought to exclude wind from the state’s Renewable Energy Standard (RES). Although neither bill advanced, they highlighted rural Colorado’s concerns over land use and environmental impacts from large-scale utility projects.
Another bill, HB26-1129, which proposed exempting residential customers from the Clean Heat Plan’s emissions requirements, was also shelved. Supporters, including the Independence Institute, argued that the Clean Heat Plan’s targets would exceed statutory cost caps significantly. Representative Goldstein (D., Westminster) remarked before voting against the bill, “you can’t kill an entire industry and it not have long-standing repercussions… It should not be made right by making a new wrong.” Her comment reflects the broader debate surrounding energy affordability and access in the state.
Looking ahead, several bills are awaiting their turn in committee. SB26-022 is notable, as it could extend the emissions reduction deadline for co-ops and municipal utilities from 2030 to 2040, provided they demonstrate potential grid reliability issues or rate increases. Meanwhile, SB26-002 seeks to introduce a “First Allotment of Residential Electricity” program to assist low-income customers.
On the data center front, HB26-1030 and SB26-102 are yet to be heard, suggesting ongoing negotiations. Additionally, HB26-1246, scheduled for a March 12 hearing, proposes allowing companies to manage their own electricity generation, bypassing Public Utilities Commission (PUC) regulation.
The only bill to pass so far is SB26-052, the Coal Transition Community Investment Act, awaiting the governor’s signature. This act focuses on supporting displaced coal workers through mandatory hiring preferences and expanded public investment options.
The House Energy and Environment Committee has made moves on HB26-1226, which proposes stricter emissions limits by 2029 and financial mechanisms for utilities to recover compliance costs. This bill introduces potential conflicts between state and federal regulations for coal plants.
On a positive note, HB26-1121, which would have imposed public reporting and fines on facilities emitting pollutants, was set aside. This decision avoids additional compliance costs and legal challenges for such facilities.
The ongoing reauthorization of the Public Utilities Commission (PUC) is a major focus. Under Colorado’s sunset review process, any changes to the PUC’s statutes can be made during reauthorization. The Department of Regulatory Agencies recommends extending PUC reauthorization to 2037, suggesting some changes to transparency and compliance calculations. The Independence Institute plans to provide testimony on this matter as the session progresses.
As the session continues until May 13, the future of bills like SB26-022 remains uncertain. Governor Polis’s 2040 clean energy acceleration proposal, although not yet reintroduced, could significantly impact the legislative agenda if it reappears. With energy-related legislation comprising a substantial portion of this year’s bills, Colorado’s energy grid faces a challenging future as lawmakers navigate these complex issues.
Original Story at i2i.org